adBlockCheck

McDonald's Stock Slides As More Consumers Turn To Food

Top Headlines

Business

How Obamacare Can Be Improved

With Aetna just the latest health insurance provider to opt out of covering Obamacare markets, many are wondering what changes can make the Affordable Care Act more appealing to customers and insurance companies. Here are some proposed improvements

How Internet Clickbait Works

Facebook and other sites have recently begun to fight back against “clickbait,” often misleading internet posts designed to be seen by as many readers as possible. The Onion breaks down the production and spread of this content

Home Depot Employee Can Tell This Customer’s First Attempt At Pipe Bomb

APPLETON, WI—Shaking his head Monday as the customer selected a length of plastic pipe over a stronger metal alternative and placed it into his shopping cart, local Home Depot sales associate Graham Warner, 57, was reportedly able to tell right away that this was the store patron’s first attempt at making a pipe bomb.

Disappointing Buffalo Wild Wings Not Living Up To Ridicule

LOS ANGELES—Describing the experience as a significant letdown, local diner Eric Tidwell told reporters that the disappointing Buffalo Wild Wings franchise he visited Thursday night failed to live up to the scorn he had long heard about the restaurant.

KFC Introduces New Previously Owned 20-Piece Hot Wings

LOUISVILLE, KY—In an effort to meet the changing demands of its consumers, fast-food chain Kentucky Fried Chicken announced Wednesday that it has begun offering customers the option of purchasing, at a significant discount, a 20-piece box of pre-owned hot wings.

Man Has Loyalty To Pretzel Brand

BROWNSVILLE, TX—Describing them as “the best pretzels out there” and “the only ones [he] buy[s],” local resident Ned Carlisle expressed his firm loyalty to Snyder’s of Hanover–brand pretzels Tuesday.

New Mountain Dew Vows To Kill 99.9% Of Stomach Bacteria

PURCHASE, NY—Touting the beverage’s refreshing citrus taste, tongue-tingling carbonation, and prescription-strength antimicrobial properties, PepsiCo officials announced Wednesday that their newest product, Mountain Dew Code White, kills 99.9 percent of consumers’ stomach bacteria.

Heart Attack A Real Wake-Up Call For Man’s Insurance Provider

HARTFORD, CT—Saying the incident had forced them to completely rethink their past decisions about the man’s coverage and how they would approach his policy from here on out, Aetna executives reported Thursday that the recent heart attack of longtime plan member Michael Burns was a real wake-up call for the 163-year-old insurance company.

Big-Box Stores Vs. Small Businesses

While massive superstores like Walmart and Target have dominated the retail landscape for years, many shoppers are rejecting them in favor of smaller, locally owned shops. Here is a side-by-side comparison of the two options:
End Of Section
  • More News
Up Next

McDonald's Stock Slides As More Consumers Turn To Food

OAK BROOK, IL—The McDonald's Corporation announced Tuesday that it will close 175 restaurants and cut nearly 600 corporate jobs, responding to a plunge in stock prices blamed on a depressed economy and rising consumer interest in actual food.

McDonald's Stock Graph

"Though still America's number-one hamburger retailer," McDonald's CEO Jim Cantalupo said, "we have entered a brief period of restructuring due to the steady growth of other convenience eateries and, more significantly, growing competition from producers and distributors of demonstrably nutritive matter, i.e. food."

In the fourth quarter of 2002, McDonald's posted the first quarterly loss in its 47-year history. Its stock closed Tuesday at $15.78, a seven-year low for the quasi-food giant.

Analysts attribute the bleak financial picture to numerous factors, including the uncertain economy, poor management, eroding market share, and widespread health concerns about beef—a component sometimes used in the construction of McDonald's hamburger patties.

"Though well-accustomed to weathering recessions and changing tastes, the Golden Arches may be facing its toughest battle ever, given the surging public interest in leading healthy, active lives and consuming objects that taste at least remotely organic," analyst Carolyn Moss of Lehman Brothers said. "These days, people seem more interested in eating food than hormone-hybrid lab patties."

A tray of McDonald's semi-synthetic digestibles.

The world's leading purveyor of semi-synthetic digestibles, McDonald's became a franchise in 1955 and quickly expanded across the U.S., thanks to innovative marketing, low prices, and exemption from FDA regulations, given that its products fall outside the scope of the agency. McDonald's has proven a popular favorite among busy, on-the-go Americans lacking the time for genuine food.

But for all its financial woes, McDonald's is optimistic for the future.

"This whole non-reconstituted-food craze will pass," Cantalupo said. "People have enjoyed our meat-flavored pseudo-patties for decades, and we're not going to be scared by consumers' passing interest in burgers that actually taste like an animal, served on bread that's less than a week old and garnished with ve-ge... ve-ge... ve-ge-tables."

Said McDonald's COO Charlie Bell: "We don't see the burgeoning food industry as a threat, but rather as a public fancy with which McDonald's can happily co-exist."

Added Bell: "I even enjoy some food myself here and there. I ate some corn just last weekend."

In spite of McDonald's outward optimism, rumors abound that the company is pondering some of its most extreme changes ever. McDonald's famed management-training facility, Oak Brook's Hamburger University, is reportedly developing an unprecedented "food studies" program. The facility is also rumored to be adding a research wing to teach culinary fundamentals for eventual incorporation into the McDonald's business plan.

"The bottom line is, we're doing fine," Bell said. "Certainly, as a last resort, we could introduce some recognizably food-like items, perhaps a sandwich made with animal matter and vegetables that have not been shredded, condensed, and flash-frozen to remove all possible nutritional content or general appearance of earthly origin. But I honestly don't think it will ever come to that."

WATCH VIDEO FROM THE ONION

Sign up For The Onion's Newsletter

Give your spam filter something to do.

X Close